Legal expenses from outside law firms are significant for companies, but artificial intelligence (AI) is revolutionizing in-house legal practices, helping to reduce these costs. Doug Mandell, general counsel at Inflection AI, utilized a legal AI tool from GC AI to draft a data security policy, significantly speeding up the process and minimizing billable hours with outside counsel. In-house lawyers are increasingly adopting AI technology to enhance efficiency, as they are judged on minimizing business disruptions, not extending timelines. Firms like Harvey are shifting their focus to enterprise clients as corporate legal teams seek to streamline tasks, improving productivity and reducing reliance on external firms. This trend is reshaping expectations between in-house teams and law firms. With stagnant budgets, general counsels are scrutinizing how firms leverage AI in their practices, leading to increased demand for technology-driven solutions while maintaining essential human judgment for strategic decisions.
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